Ryanair has confirmed that its main Irish defined benefit pension scheme has been wound up after agreeing to fund a €9.7 million deficit.
The airline also agreed to pay an additional top up of €2.8 million into the scheme following “protracted negotiations” with the trustees.
The 121 active members of the defined benefit scheme are now able to join the Ryanair’s contribution scheme in which future benefits will depend on investment performance.
The defined benefit scheme covers less than 1.5% of Ryanair’s 9,000 staff as it was closed to new members 14 years ago.
Ryanair’s chief financial officer Howard Millar said: “With only 121 active members and a deficit of just under €10 million, the board of Ryanair believes that it is the appropriate time to wind up the defined benefit scheme.
“By fully funding the deficit, and providing an additional top up of €2.8 million to enhance transfer values, Ryanair has effectively eliminated pension liabilities from its balance sheet.
“This is in marked contrast to many of our competitor airlines, whose pension schemes are running enormous deficits, in excess of hundreds of millions or billions.”